Young Drivers Are Suffering Most From Whiplash Claims
Young motorists are seeing insurance costs increase further as insurance companies raise prices to tackle an increase in whiplash and fraudulent claims. Tiger.co.uk asks whether telematics-based insurance could help?
Earlier this year the Institute and Faculty of Actuaries revealed that whiplash personal injury claims had risen by 20% between 2010 and 2011.
The rise in whiplash claims and “crash for cash” scams has forced an increase in payouts by insurance companies which have affected insurance premiums for all motorists, but young drivers insurance costs have been particularly affected by it.
This is not great news for those trying to get cheap insurance for young drivers. Tiger Watch, the insurance price monitor published by Tiger.co.uk, has documented that over the last year the cost of car insurance for women has increased by 9.2% and young drivers are paying up to three times the average insurance premium. This trend has provoked insurance companies to provide alternatives for young motorists to improve the affordability of motor insurance. Telematics-based motor insurance is one such innovation being credited with saving young drivers money – a recent report from the British Insurance Brokers Association (BIBA) claimed that in some cases the price of young drivers insurance premiums can reduce by as much as £1,000 when taking out a telematics policy.
Telematics insurance requires the installation of a box about the size of a mobile phone to a car which uses GPS technology to record driving habits. Data collected can include the number of miles driven, the time of day when the car is driven, and the force of accelerating and braking. This data is then used to calculate motor insurance prices. Telematics insurance policies can be a good choice when looking for young drivers insurance, where premiums are much higher than those for older drivers. There are also additional benefits to having a telematics box installed; the boxes can also be used as a tracking device in the event of a vehicle being stolen and some can be used to notify the emergency services in the event of a serious accident.
Andrew Goulborn, Commercial Director at Tiger.co.uk commented:
“The increase of whiplash and fraudulent claims is a problem that the industry needs to tackle as it is one of the major contributing factors to insurance inflation. For many Tiger.co.uk shoppers, especially young drivers, telematics policies provide better value than “standard” policies. Drivers buying them like the fact that their insurance prices are based on their actual driving behaviour and careful, safer drivers can benefit from this. We have increased the amount of telematics partners on Tiger.co.uk and now offer quotes from five providers, with the intention of adding more over the coming months.”
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